Nuclear Power Generation Industry: Is Nuclear Power Generation Coming Back With SMR?

0

The authors are analysts from NH Investment & Securities. They can be contacted at jinmyung.choi@nhqv.com and minjae.lee@nhqv.com, respectively. — Ed.

There is an ongoing debate about whether nuclear energy is a form of green energy

Energy ministers from 10 European countries (including France) issued a joint statement highlighting the importance of nuclear energy and proposing nuclear energy as green energy. But this statement has drawn criticism from European countries that have been phasing out nuclear power. These developments show that before being mostly against nuclear power, Europe’s position is changing.

Debate rages over nuclear power policy as presidential election nears

In Korea, as the presidential election approaches, all eyes are on the country’s determination to stick to its nuclear exit policy. Over the past five years, the construction of new nuclear power plants (NPP) has been suspended and nuclear energy has been excluded from the green taxonomy. However, the change in policy is likely to depend on the outcome of the upcoming elections, given that presidential candidates from opposition parties are advocating the construction of nuclear power plants.

SMRs are emerging as a new alternative to traditional nuclear

A renewed interest in nuclear power has spurred market interest in small modular reactors (SMRs) as a new alternative to traditional nuclear technology. While views on traditional nuclear power generation vary widely across countries and ruling and opposition parties, they are all uniformly supportive of SMR technology. This development is largely driven by growing expectations that SMR technology can help significantly reduce the risks associated with nuclear power generation.

SMR technology must prove itself over the next decade

Over the next decade, a number of massive experiments and investments will be made in SMRs. Globally, more than 72 SMR models are currently under development. NuScale Power, acquirer of the world’s first US SMR design certification, is to list on the US stock exchange in 1H22 to secure funding for the experiments and construction costs of an SMR-based power plant.

List of NuScale Power to benefit other related games; suggest DHIC as a promising game

In the stock market, we draw attention to DHIC and KEPCO E&C among domestic players, and Fluor in foreign markets. DHIC and Fluor are among the main shareholders of NuScale Power, the first player in the world to have built an SMR plant. In particular, in return for its equity investment in 2019, DHIC is promised priority supplier status for materials and equipment for NuScale Power’s five projects. This means that DHIC could generate profits even from NuScale’s pilot projects. We also point out that the number of pieces of SMR hardware and equipment is a little more limited than that of SMR’s developing companies. DHIC’s strong track record, built on NuScale’s projects, should serve positively for the company to become a supplier of other SMR models in the future.


Source link

Share.

About Author

Comments are closed.